---
id: "framework-4-market-criteria"
type: "framework"
source_timestamps: ["00:03:15", "00:03:54"]
tags: ["market-research", "b2b"]
related: ["concept-4-market-criteria", "action-day-1-market-selection"]
---
# The 4 Criteria for Market Selection

## Purpose
A checklist used to validate whether a specific local-business niche is viable for an AI marketing agency.

## The 4 Steps
1. **Proof of Concept** — Verify that other agencies are already successfully making money in this exact niche. Avoid pioneer status; pioneers make the most mistakes.
2. **Total Addressable Market (TAM)** — Ensure there are at least **10,000** potential prospect businesses in the market.
3. **High Ticket** — The businesses must sell a service worth **$500+ per transaction**, or have high recurring revenue.
4. **Growing Market** — The industry must be experiencing **year-over-year growth**, not stagnation or decline.

## How to Use It
Feed the criteria to [[entity-product-claude]] alongside your personal context/budget. Ask for 3 ranked recommendations. See [[action-day-1-market-selection]].

## Example Validated Niches
Med Spas, HVAC, Dental Offices, fitness franchises (e.g., the niches served by [[entity-org-gymmembersnow]]).

## Conceptual Background
See [[concept-4-market-criteria]] for full nuance and the expert-context overlay.